Several Anomalies noted
According to the Auditor General's report on AFL, selective tenders were called for the renovation works for the Nadi house and it has been established that Baycorp Holdings Limited and another two companies were requested to submit tenders.
The AG has ascertained that despite Swami Construction Limited submitting the lowest tender price of $120,000, the project was awarded to Baycorp Limited Holdings at a higher price, which according to the then CEO Ratu Sakuisa Tuisolia produced better quality work. However, the Auditor General said this could not be substantiated as this was Baycorp's first job with AFL.
It has also been revealed that actual expenditure incurred on the renovations of the official residence of the AFL CEO exceeded the original approved sum of $197,000 by $27,668.
The Auditor General's report further states that the reasoning by the CEO Tuisolia in dealing with Baycorp Holdings lacks justification because Baycorp Holdings was incorporated as a company on 5th June, 2003 having its registered office in Suva and was awarded the contract by AFL in November 2003. It has also been revealed that AFL assisted Baycorp Holdings financially by making progress payments after they were given the contract to renovate the residence, instead of a one-off payment as required by the contract. It has also been established that one of the principals, Anil Chandra of Woodland Construction Limited, a subsidiary of Strategic Air Services Limited resigned on 16th July 2002 and is the Managing Director of Baycorp Holdings. The audit however, noted that Chandra is not one of the Directors of Baycorp Holdings.
However, Baycorp Holdings responded to the Auditor General during the audit and confirmed that Anil Chandra is a director of Baycorp.
In response AFL also said that there has been an unfortunate attempt to discredit the renovation of the official residence of the CEO. It said that the investment should be assessed based on its excellent outcome in terms of the newly and tastefully renovated CEO's home and the added value to the company for what it paid for. It also said that this should be compared relatively to the 1 million dollars that the Reserve Bank of Fiji had invested in the official residence of the RBF Governor.
AFL also said that the CEO had no role in the tender process and did not know the owner of Baycorp Holdings until after the contract was awarded.
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